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02. Draft minutesCUPERTINO DRAFT MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Tuesday, January 12, 2010 ROLL CALL At 3:00 p.m. Mayor Kris Wang called the regular meeting to order in the Council Chamber, 10350 Tone Avenue, Cupertino, California, and led the 1?ledge of Allegiance. Present: Mayor Kris Wang, Vice-Mayor Gilbert: Wong, and Council members Barry Chang, Orrin Mahoney, and Mark Santoro. Absent: none. WRITTEN COMMUNICATIONS The Deputy City Clerk distributed an email from Susan Sievert regarding the Environmental Protection Agency's failure to control mercury pollution from cement kilns. STUDY SESSION 1. Conduct a study session to learn about regulation of the Lehigh Cement Plant (formerly Kaiser and Hanson}. A. Introduction of speakers and presentations by regulatory agencies. • US Environmental Protection Agency - Shaheera Kelly, EPA Region 9, Lehigh Title V Permits Ofc Lead • Regional Water Quality Control Board Bruce Wolfe, Executive Director • Bay Area Air Quality Control District Jack Broadbent, Chief Executi~~e Officer Brian Bateman, Director of Engineering • County of Santa Clara Jody Hall Esser, Director, Dep~~rtrnent of Planning and Development Gary Rudholm, Senior Planner Shaheera Kelly, Environmental Engineer for the Environmental Protection Agency (EPA), gave a PowerPoint presentation on the EPA's role in regulating the Lehigh Southwest Cement Plant. Her presentation covered regulatory mechanisms; air permits including Title V review, New S+~urce Review (NSR), and Prevention of Significant Deterioration (PSD) construction permits; EPA's national rules; New Source Performance Standard (NSPS) for cement plants; National Emission Standard for Hazardous Air Pollutants {NESHE~.P) for cement plants as well as proposed limits and 2-1 January 12, 2010 Cupertino City Council Page 2 projected reductions, and potential requirements for Lehigh; Greenhouse Gas (GHG) regulations; compliance/enforcement; the Federal Clean Water Act; and air toxics monitoring at Stevens Creek Elementary School. Jack Broadbent, Chief Executive Officer for the Bay Area Air Quality Management District (BAAQMD), introduced Brian Bateman, Director of Engineering for the District; Jeff McKay, Deputy Executive Officer in charge of operations; and Sue Gardner, the City of Monte Sereno's representative on the BAAQMD's Governing Board. Mr. Bateman gave a PowerPoint presentation on the District's regulation of the Lehigh Southwest Cement Plant. His presentation covered the California air pollution control agencies; sources of air emissions, air pollution regulatory requirements, and upcoming regulatory requirements for Lehigh; and concerns expressed by the public. Shin-Roei Lee, Watershed Management Division Chief for the San Francisco Bay Regional Water Quality Control Board, gave a PowerPoint presentation. Her presentation covered an overview of the Board's existing permits, orders, and policy; water reclamation requirements; stormwater general permit; cleanup and abatement order; water quality certification for waste discharge requirements; and mercury total maximum daily load for the San Francisco Bay. Gary Rudholm, Senior Planner with the Santa Clara County Planning Office, introduced Jim Pompy from the Office of Mine Reclamation, and Santa Clara County Counsel Lizanne Reynolds. He also later discussed an overview of how the County implements the requirements as the lead agency regarding the .Lehigh Cement Plant. Jim Pompy from the Off ce of Mine Reclamation gave a PowerPoint presentation. His presentation covered the intent of the Surface Mining and Reclamation Act (SMARA); the agencies to which it applies; key elements of the Act; vested rights; who administers the agency and the lead agency's responsibilities. He also explained reclamation plans, requirements, phased mining and reclamation, and provided information about the agency's website. B. Council questions The City Council asked questions of the various regulatory agency representatives. C. Public comments Robina Vandersteen said that she was concerned about the proximity of the quarry when she originally bought her home but was assured that it would be gone soon and the hillside restored to its original appearance. She noted that since then, she has only seen expansion of the quarry and more trucks, and wants more regulation. Bruce Woolpert, president of Granite Rock Company and resident of Cupertino, said that limestone is very rare in California. He noted that Granite Roclc Company supplies 2-2 January 12, 2010 Cupertino City Council Page 3 concrete to businesses from King pity to San Francisco and that Lehigh makes the best quality cement because the product: made in this area doesn't deteriorate. Dennis West asked if benzene was being monitored, if the dredge material from the ponds was being checked for mercury and other pollutants, and where is it being disposed. He noted that the cement plants are needed but that they also need to be healthy for.people who live around them. John Morrison said he has been a Lehigh employee for 32 years as a Maintenance Associate and works with the eq~sipment and lubricants. He noted that many of the lubricants used now are dedicated Toward protecting the environment. Barbaza West encouraged Council to continue efforts to monitor Lehigh and asked how long the plant could operate under the current permit. She said that the additional mobile monitors should monitor all toxic air contaminants including mercury, arsenic, and especially benzene. Victoria McCarthy said that she works for Lehigh and that the company commits to its employees and to making an investment for the future. She noted that her job entails quality control by sampling the product in the field and bringing it back to the lab for testing. Cathy Heigerson showed a photo ~~f the storage area from the quarry and said that the mountain is being pulled down. She expressed her concern about debris blowing around and asked Council to develop a task force to talk about all the issues. She noted that the discharge from the plant is going into the pond and poisoning the drinking water. Ralph Otte said that seniors can't vivestigate what's going on at the cement plant and he thanked Council for looking into t11e issue. He also thanked the members of Ad Hoc, a volunteer organization who is an oversight committee fox the Lehigh cement plant to urge compliance. Al Silva said he was a resident of Cupertino and employee of the plant working as an inspector. He noted that in the 80 years his family has worked for the plant, the plant has always complied with all the regulatory agencies, has been a good neighbor, and doesn't impose any health issues to~ the surrounding community. Michael Gottwald said that he was concerned about air quality and finding a solution to the pollution from the cement plant. He added that he wouldn't want to close the facility since there are too many hardworking people there. Bill Almon said he is the founder of a group called Quarry No and that they have 200 residents of Cupertino as member:;. He thanked the representatives of the agencies for trying to solve the problem but said the community has lost trust because of the dust and arsenic. He explained that the .group continues to take samples along Foothill Blvd. and knows that the product of the dust comes from the cement plant. He noted that the 2-3 January 12, 2010 Cupertino City Council -Page 4 cement has 20-50 times the trigger level for arsenic in the state of California and that action should be taken to remove what is there and stop further releases. Joyce Eden from the West Valley Citizens Air Watch said that the mercury coming from the stack comes from the limestone which volatilizes the mercury. She noted that it's one of the highest contents of mercury limestone that there is and produces an average of 415 pounds of mercury per year. She said she is supportive of the proposed EPA rule to reduce this toxin by using a single stack and putting the continuous emission monitors on the stack. She urged the Air District to make stronger rules. Ken Smythe, speaking behalf of Judy Harrison, talked about a study from the University of Texas Health Science Center in San Antonio correlating the rate of autism to mercury emitting sources. He noted that low-dose exposure to environmental toxins, especially mercury, are a particularly high risk for pregnant women. Tim Brand said he lives a mile from the kiln and that there have been no substantive changes to the kiln, which has been burning the same limestone in the same kiln, with the same emissions equipment since the 80's. He said he was excited about talk to improve the emission control at the plant. Ignatius Ding said that it's irresponsible for officials from the agencies to say they don't know where the dust is coming from. He explained that he has spent his own money and time in doing studies in Cupertino and knows that the dust is actually cement that contains lethal mercury poison. He noted that 580 pounds of mercury is produced every year and he wondered where it goes and that it is a health hazard. Deborah Jamison, speaking on behalf of the Santa Clara Valley Audubon Society, said they looked into what is known about the toxicity levels in Permanente Creek in conjunction with a flood control project and found that in February, 2009, the San Francisco Bay Regional Water Control Board approved a proposed clean water act listing for Permanente Creek for toxicity, general toxicity and selenium in the creek water. She noted that water samples in the upper creek consistently exceeded the national toxicity rule of continuous total selenium concentration objectives of 5.0 micrograms per liter and that one water sample tested over 12 micrograms per liter. She said that the creek water goes into the South Bay water and affects water quality because the toxins accumulate. Julie Lin, speaking on behalf of Frank and Karen Geefay, showed a picture of the Lehigh area from Google Earth noting how big the quarry is and its position relative to the Stevens Creek Reservoir about 1.5 miles away. She noted an article about toxic fish in the reservoir and a sign to not eat the fish at the reservoir because of mercury poisoning. She said that no other mining activity takes place in the area so the mercury must be coming from the cement plant. She noted that according to the Cupertino General Plan, Cupertino gets about half of its water from ground water and runoff and in order to make the environment sustainable, the mercury pollution must stop as soon as possible. 2-4 January 12, 2010 Cupertino Ciiy Council Page 5 Donna Cotner from West Valley Citizens Air Watch asked why the County wasn't cleaning up and addressing the d~unage that has already been done before issuing the permit for more quarrying. She al:~o asked if there was a legal reason to not separating the Environmental Impact Report (EIR) for the reclamation plan from the new quarry reclamation plan. John Bartas said that he lives less than a mile from the plant and noted that if the plant were to close down, many people would lose their jobs, but that jobs aren't more important than the right to clean air. He said that a lot of industries start with the best intentions and end up being toxic and dangerous to the community. Ken Smyth said that mercury is the second most toxic element on the planet, since it is a neurotoxin that causes brain del;eneration. He talked more about the study from the University of Texas mentioned earlier. Craig Lee addressed effects from. the plant including speeding trucks, debris falling from trucks, and noise from trucks. He encouraged the City to publicize the steps that can be taken to report debris damage and how to provide feedback to law enforcement. He said he knows both the cemer.~t plant and the quarry pxofess to be good neighbors and he hoped they will help to address the speed, debris and noise problems. Yuh-Ning Chen said that the County has the largest increase of autism from 2001-2007 due to mercury. She encouraged Council to ask the County to monitor the Lehigh plant operations and put out a reclamation plan for review. She said she was concerned about lack of regulatory oversight. Dave McLeroy said that he doesn"t want to get rid of the plant but is concerned about not being given all the informatioia. He said that he did his own personal mitigation of water purification and air filtration and would like to see better compliance fxom the plant. Kurt Takara said that he lives within a mile of Lehigh and that all the toxins talked about makes him nervous for the safety of the children he works with. He noted that historically the plant has had violations and in response are then given even more area to mine on. He said this can't be good for Cupertino. Karen Del Compare said that in March, 2008, she noticed a large pile of material east of the main pit and notified the County and the State Geology and Mining Board. She said the County determined that it was an illegal storage pile of mining waste and that a violation was issued but no fine was given, and it was included in the reclamation plan to not move it. She listed violations from the Sept. 2007 State Mining and Geology Board Executive Officer report including encroachment, over steeping slopes, un- engineered fill, inadequate topsoil :management, inadequate soil erosion, and inadequate drainage measures impacting the :adjacent watersheds. She said that another issue for Cupertino residents is a large amount of diesel trucks polluting the air and that this type 2-5 January I2, 2010 Cupertino City Council Page 6 of pollution is associated with increased cancer risk, respiratory disease and cardiovascular disease. Henrik Wesseling, Lehigh Plant Manager, said he is responsible far the cement plant operation for the quarry and for future improvements, and he was proud to celebrate the plant's 70th anniversary in Cupertino. He said he is aware of the concerns of the neighbors and the responsibility the plant has to the community; and they are continuously improving the operation and environmental aspect of the plant. He noted that the plant operates one of the most fuel efficient kilns in California as well as the entire United States, and they are complying with stringent rules and regulations. He said that all emission testing is done by engineers from the Bay Area or by independent certified stack testing companies. Tim Matz, Corporate Director of Environmental Affairs for Lehigh stationed in Dallas, TX, said that Lehigh is currently in compliance with all of its air environmental rules and regulations and feels that since the plant is a member of the community, it's their obligation to continuously approve upon and, where possible, to go above and beyond compliance. He offered some examples of where the plant could improve or go above compliance including mercury reduction and pilot studies to learn how to reduce mercury emissions by using different technologies including activated carbon injection. Marvin Howell, Director of Land Use Planning and Permitting for Lehigh, said that the plant has played an historic role in the development of the community because the cement that came from the facility built the Golden Gate Bridge, the Bay Bridge, Shasta Dam, and San Jose International Airport, and also supplies 70% of the cement used in Santa Clara County and 50% in Bay Area overall. He noted that cement produced locally and used locally benef is everyone, including the environment and explained that the Green Building Council considers the use of locally produced cement and limestone in granting LEED certification in new building projects. He said that California is able to supply 80% of its need for cement and the rest is imparted from off shore. Many plants elsewhere are not subject to the same stringent requirements as California, and importing adds 20% of carbon imprint just from the transportation. D. Council comments Council member Orrin Mahoney said that he learned a lot about the Lehigh issue from the regulatory representatives and that the Council will continue to take an active role in pulling the right resources together. He said that he was glad to hear from the experts that there is no current health risk, that there are new rules to reduce any potential risk, and that Lehigh states they have plans to implement those new rules. He said it would be good to work through the disagreements to come to a truthful conclusion as much as possible. Vice Mayor Gilbert Wong said that it was very educational to learn about what the different agencies do and that because of the public's concerns he felt that the right 2-s January 12, 2010 Cupertino City Council Page 7 regulatory agencies were being addressed. He said he is glad that Lehigh wants to work with the community and the regul~~tory agencies regarding their reclamation plans. Council member Mark Santoro said that even though Cupertino doesn't have jurisdiction, he believes in transparency of government to learn what is really going on and see if there is a problem. He ~;uggested establishing a hotline for complaints and to look into the issue of trucks dumping debris on the roads. He said he was concerned that some answers weren't right a.t hand from the representatives and wanted to make sure the regulatory agencies were cloing their job and verifying compliance. Council member Barry Chang said that he would like to look into having the City provide a mobile source of testing in Cupertino to gather.our own data and to also look into the hours of the trucks, how much they can load, and the road impact fee. He said he was glad Lehigh was willing to reduce the mercury emissions and noted that his goal was not to shut down the plant lout to make sure it was in compliance in order for residents .to have clean air to bre~~the. He said it was important for everyone to work together. Mayor Kris Wang thanked staff for getting all the key agencies available to speak at the study session and thanked the agencies for coming. She said that she knows this won't be the only meeting and that Council cares what the residents feel, but noted that the plant is not in the City's jurisdiction. Mayor Wang noted that Cupertino residents ma.y contact the various regulatory agencies directly if they have further concerns or questions about the Lehigh Quarry and Cement Plant. {Those agencies are listed in the following paragraphs}. Regional Agencies Bay Area Air Quality Management District -attains and maintains air quality standards, increases public awareness of positive air quality choices. General Site: http://www.baagmd.gov/ Public Notices: http://www.baacLmd.gov/pmt/title v/public notices.htm#santaclara Santa Clara County Planning -plans and regulates land use and development within the unincorporated portions of Santa Clara County. The following is the link to County web site. Search for Lehigh. General Site: http://www.scc og v.org SF Regional Water Quality Control Board -develops and enforces water quality objectives and implementation plans that will best protect the St<<te's waters. General Site: http://www.swrcb.ca.gov/rwgcb2/ Public Notices: http://www.swrcb.ca.aov/;~anfranciscobav/public notices/nublic notice.shtml Public Records: http://www.swrcb.ca.gov~'sanfranciscobay/about us/public_reauest.shtml 2-~ January 12, 2010 Cupertino City Council Page 8 Santa Clara Valley Water District - acts as the county's water wholesaler, but also as its flood protection agency and is the steward for its streams and creeks, underground aquifers and district-built reservoirs. General Site: http://www.scvwd.dst.ca.us/ Permanente Creek Info: http•//www.valle~water.or ater/Watersheds - _streams and floods/Watershed info &~rojects/Lower Peninsula/Permanente Creek/index. shim _ State Agencies Office of Mine Reclamation (OMR) -Created in 1991 to administer the Surface Mining and Reclamation Act of 1975 (SMARA). Established to meet the Act's requirement, OMR provides assistance to cities, counties, state agencies and mine operators for reclamation planning and promotes cost-effective reclamation. General Site: http•//www.conservation.ca.g_ov/OMR/Paaes/lndex.aspx Reclamation: http•//www.conservation.ca~goy/omr/reclamation/Pages/index.aspx Notices: http•%/www conservation.ca.aov/omr/official notices/Pa~es/index.aspx California Air Resources Board -Attains and maintains healthy air quality, conducts research into the causes of and solutions to air pollution. General Site: http://www.arb.ca.~ov/homepa~e.htm Public Records: http://www.arb.ca.~ov/html/pubrecsguidelines.htm Online Services: http://www.arb.ca.gov/html/databases.htm Water Resources Control Board -preserves, enhances, and restores the quality of California's water resources, and ensures their proper allocation and efficient use for the benef t of present and future generations. General Site: http://www.swrcb.ca.gov/ CAL-OSHA -protects workers and the public from safety hazards through its Cal/OSHA General Site: http://www.dir.ca.gov/dosh/ Federal Agencies Environmental Protection Agency -leads the nation's environmental science, research, education and assessment efforts. " General Site: http://www.epa.gov/ U.S. Fish & Wildlife -works with others to conserve, protect, and enhance fish, wildlife, and plants and their habitats for the continuing benefit of the American people. General Site: http://www.fws.gov/ Mine Safety and Health Agency -enforces compliance with mandatory safety and health standards as a means to eliminate fats! accidents; to reduce the frequency and severity of nonfatal accidents; to minimize health hazards; and to promote improved safety and health conditions in the Nation's mines. z-a January 12, 2010 Cupertino City Council Page 9 General Site: htt~//www.msha.gov/ U.S. Geological Survey -provides reliable scientific information to describe and understand the Earth; minimizes loss of life and property from natura disasters; manages water, biological, energy, and mineral resources; and enhances and protect our quality of life. General site: http://www.usgs.aov/ ORAL COMMUNICATIONS Robin Claassen said he is a De Anza College studlent involved with the statewide student movement to oppose further budget cuts to California higher education institutions. He asked for Council support by approving a resolution opposing budget cuts to California higher education institutions. He noted that in September there was a general assembly of stuudents all over California to make March 4 a day of action. De Anza will bring a busload of students to Sacramento for a march. He said his group is working to cooperate with faculty and administrators at De Anza College and hopes to have the support of local government as well. ADJOURNMENT At 6:30 p.m., the meeting was adjourned to Tuesday, January 19, at 3:00 p.m., for a study session regarding the Mary Avenue housing proposal by the Cupertino Rotary Club. The study session will be held in the Council Chambers, 10300 Torre Avenue, and the regular Council business session will follow at 6:45 p.m. Grace Schmidt, Deputy City Clerk Staff reports, backup materials, and items distributed at the City Council meeting are available for review at the City Clerk's Office, 777-3223, and also on the Internet at www.cupertino.org. Click on Agendas & Minutes, then click on the appropriate- Packet. Most Council meetings are shown live on Comrast Channel 26 and AT&T U-verse Channel 99 and are available at your convenience at www.cupertino.ora. Click on Agendas & Minutes, then click Archived Webcast. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364. 2-9 CUPERTINO DRAFT MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Tuesday, January 19, 2010 ROLL CALL At 3:00 p.m. Mayor Kris Wang called the regulaz adjourned meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California. Present: Mayor Kris Wang, Vice-Mayor Gilbert Wong, and Council members Barry Chang, Orrin Mahoney, and Mark Santoro. Absent: none. 1. Conduct a stud sew scion to review a potential project from the Cupertino Rotary Housing Corporation {CRHC) toto construct approximately 18 to 20 affordable senior housing units within a portion of the public right-of--way on the west side of Mary Avenue. This area is currently being used as diagonal parking and an undeveloped strip of land behind the existing curb. Charlie Niemeyer, Director of the Live Oak Adult Day Center, stated that affordable senior housing was very important to the community. It gave an opportunity to seniors to stay in the community instead of being forced to . xelocate out of -town for financial reasons. Richard Lowenthal, speaking on behalf of the Cupertino Rotary Club, explained that the Cupertino Rotary Housing Corporation (CRHC) was an independent 501 C-3 non-profit corporation that only did affordable housing. He gave a slide show presentation showing other Rotary Club models of affordable housing in Sausalito and Novato. The proposal before City Council was for 18-20 small cottages about 800-900 square feet each, in close proximity to the Senior Center, Memorial Park, and the Flint Center for the Performing Arts. The CRHC's primary function would be to raise the funds and to manage the project over the long term. The total cost was expected to be about $5 million, with no cost to the City's General Fund. The project would have sidewalks and on-street parking, and would create a very pedestrian-oriented feel. He listed additional benefits of this site, including: (1) It would avoid school impacts; (2) It would restripe Mary Avenue so it would be a slower and safer two-lane neighborhood street; (3) It would have parallel parking and bike lanes on each side of the street; and (4) There would be additional trees and landscaping. z-~o ranuary 19, 2Q10 Cupertino City Council Page 2 Mr. Lowenthal said the proposal was for the City to provide the land as a long-term lease, or to deed it to the CRHC. In turn, the corporation would raise the money, manage the construction, maintain it, and provide services to seniors. He said that they hoped the city would provide some of the money alre<<dy set aside strictly for affordable housing, but they were not asking for General Fund rr~oney. Some of it would be in the form of loans, to be paid back with rents that were roughly half of market rate. Only current Cupertino residents would be eligible for this housing. He said that some of the community concerns that have been raised included parking, traffic, air quality, property values, quality of maintenance, and senior housing needs. Lowenthal said that they did not have specific answers today, because of the cost of the studies, but could begin to work on those once the application had been filed. Mr. Lowenthal also read the following statement regarding this project:"In particular we will commit iri writing: 1) That the City will not use any General Fund money in the construction of this project; 2) That any excess revenue we get in the operation of this project will be committed to charitable i~se in Cupertino. We are willing to attach this to our deed as a covenant; 3) That we will. endeavor to find Cupertino residents to be our tenants. We are willing to attach this to our deed as a covenant; 4) That we will not use this property for any purpose other than rental senior housing. We are willing to attach this to our deed as a covenant and 5} 'T'hat we will follow all regulations regarding air quality and other environmental issues which will be confirmed in our application." Mr. Lowenthal said that there is a history in Cupertino of support for organizations like West Valley Community Services to ens~ble these organizations to help members of our community. He noted that this project was being treated differently, because at Council's request they were required to pay for th~~ notice for today's meeting, and he did so with his personal funds. . Mr. Lowenthal said that the formal application would address all the customary issues in a project including environmental issues, infrastructure issues, street improvements, design criteria, etc. He asked for the City Council to indicate support of this project by committing to it this under-used piece of land and by committing money that was set aside specifically for housing. Council raised questions about the project included the following: confirmation was needed that the city owned the property; what would be the total costs to the city; what would be the criteria for residents, air qu;~lity, parking and relinquishing the road. Vice Mayor Wong also asked the City Attorney verify that, even though four of the five Council Members were Rotarians, as were many members of the staff, there was no conflict of interest. City Attorney Carol Korade concurred with that statement, and said that such a situation had been clearly established as permissible by the Fair Political Practices Commission. She explained that participation in voluntary organizations was permitted and Council members did not have to refrain from participating in any project involving a charitable organization of which one was a member. 2-11 January 19, 2010 Cupertino City Council Page 3 James Reyff, representing acoustical and air quality consulting firm Illingworth & Rodkin, explained that there were State guidelines regarding air pollution and freeways and the Bay Area Air Quality Management group was also studying these impacts. Such studies included traffic patterns and meteorological data. Mitigation of these impacts included site design, air filtration and landscaping. The following speakers spoke in favor of the .proposed senior housing project. They discussed the importance of affordable senior housing, the aesthetic improvement of the area under discussion, that there would be no impact on the schools, and that the project would be of benefit to the entire community. Other comments included the removal of parking spaces was not an issue as this area was used primarily by illegal overnight parking by trucks and by college students looking for free city parking instead of paying for parking on campus. • Steve Andrews • Dorothy Stow • Shiloh Ballard, Silicon Valley Leadership Group • Roberta Hollimon, speaking on behalf of the League of Women Voters of Cupertino/Sunnyvale • Jim Jackson, former Cupertino Mayor • Don Burnett, former Cupertino Mayor • Ted Hatton, owner of Avery Construction (owns property across the street from proposed project) • Barbara Rogers, former Cupertino Mayor • Liz Gallegos read written comments from Elaine Glissmeyer, Executive Director of the Northwest YMCA ' • Chris Kennedy Pierce, former Senior Commissioner and Executive Director of the nonprofit The Leading Age Institute. She said there was also going to be a Silicon Valley Positive Aging Forum, and offered her support as an urban planner and age development expert to this project. • Michael Gottwald • Kathy Nellis, former Cupertino Mayor, and member of the Cupertino Rotary Housing Corporation Board • Don Staub, Board of Directors of West Valley Community Services • Jim Walker • Patrick Kwok, former Cupertino Mayor • Scott Stauffer, Board Member of Cupertino Rotary Housing Corporation • Kathy Robinson • Naomi Nakano-Matsumoto, Executive Director of West Valley Community Services 2-12 January 19, 2010 Cupertino City Council Page 4 • Don Allen • Jennifer Griffin • Liz Gallegos, President of Cupertino Rotary • Morris Hosoda The folkowing speakers were either oppo;~ed to or neutral about the project • Cathy Helgerson felt that the pollution in this location was very serious and there were better locations for senior housing, such as next to the library. She felt that Mr. Lowenthal was using his influence as a former City Council person to make this project happen. • Robert McKibbin said he was not for or against the project, but there were currently too many questions that needed answers such as the question of title to the property and what were the costs to the city. • Tom Hugunin asked to see the Memorandum of Understanding. • Darrel Lum referred to his handout which included in part the recommendations that financial analyses be done by a consultant selected by the city, with the fee to be paid by the applicant, and the property should be sold/leased at fair market value. • Keith Murphy asked about city's fiduciary responsibility and also raised the issue of conflict of interest. While there may be no financial conflict he believed there was a judgmental conflict. Council members asked to have the question about the title issue resolved before the next meeting; have staff prepare a cost analysis to show how the project would impact the city; have staff provide a list of customary waivers for nonl~rof t groups Council further asked Mr. Lowenthal to provide; a financial analysis, confirmation of title and a timeline including options and schedules for the next meeting. Council took no action but agreed that this issue would be discussed again at the February 2, 2010 Council Meeting. CLOSED SESSION -None RECESS -Council was in recess from 6:OS p.m.. until b:50 p.m. PLEDGE OF ALLEGIANCE At 6:50 p.m. Mayor Kris Wang called the regular meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL Present: Mayor Kris Wang, Vice-Mayor Gilbert Wong, and Council members Barry Chang, Orrin Mahoney, and Mark Santoro. Absent: none:. 2-13 January 19, 2010 Cupertino City Council Page 5 CEREMONIAL MATTERS -PRESENTATIONS 2. Presentation from Steve Tate of the League of California Cities' Executive Committee. Mr. Steve Tate explained that the League of California Cities and the Peninsula Division of the League worked with cities to build coalitions, to organize media events, to provide educational opportunities, and to analyze proposed State legislation and coordinate lobbying efforts. The League's top priority at this time was to protect local revenues, and they were working toward putting a proposition on the November ballot that would achieve this goal. At this time they were asking for cooperation in getting signatures for the ballot and for assistance in educating the public. Mr. Tate explained that no public resources could be used for these activities. 3. Proclamation to the American Red Cross for National Blood Donor Month. (No documentation in packet). Mayor Wang presented the proclamation to Mona Helmhold, Account Manager for the American Red Cross in Santa Clara County. Ms. Helmhold mentioned that the recent earthquake in Haiti had triggered many more blood donors, which was always appreciated, but blood was needed all year round, and some components only had a shelf life of five days. Therefore, it was important to have donors spread out over time, particularly over the next couple of weeks or months. 4. Video presentation on the Mary Avenue Footbridge from NBC news on 12/31/09. {No documentation in packet). The Council members watched a video which addressed the importance of bridges and how they transformed the American landscape. Several examples of their functional yet elegant components were shown and the Mary Avenue Footbridge was featured. POSTPONEMENTS -None WRITTEN COMMUNICATIONS The City Clerk distributed written communications from the following individuals: Item No. 1, Senior Housing proposal: • Email from Colleen Hudgen in support of the Cupertino Rotary Club housing proposal #1 • Email from Ray Lancon in support • Email from Barbara Nunes in support • Email Beverly Lenihan • Email from Nadeane Diede objecting to the level of public notice, asking where there is a perceived conflict of interest, concerns about the need to maintain parking along Mary 2-14 January 19, 2010 Cupertino City Council Page 6 Avenue and about the proposal to narrov~~ Mary Avenue, and belief that this is not the best location for senior housing Email with general comments and questi~~ns from Donna Jones-Dulin Item No. 21, CaliforniaFirst Program • Additional appendices to staff report Item No. 22, Green Building Ordinance • Email from Myron Crawford opposing tl^~e mandatory green building standards ORAL COMMiJNICATIONS Edward Hirshfield addressed the Council regarding the lighting at the Cupertino Tennis Center courts. He noted that in June, 2009 he had asked that lighting be provided for the five courts. At that time Council asked that he contact the residents of the Commons for their comments. This was done and the immediate neighbors to the courts were concerned about a possible negative impact on their property values. Therefore, he ~~vas asking Council to consider lighting the two courts not adjacent to the Commons and the court that may be built in the location of the current swimming pool when considering next year's budget. Phil and Cindy Carey introduced their line of cleaning products called WOW Green that used enzymes and no toxic chemicals. They noted that these products worked naturally and effectively and had no impact on the environment. CONSENT CALENDAR Wong/Mahoney moved and seconded to approve the items on the Consent Calendar as recommended, with the exception of Item Nos. it 1, 16, and 17,' which were pulled for discussion. Ayes: Chang, Mahoney, Santoro, Wang, and Wong. Noes: None. Abstain: None. 5. Approve the minutes from the December 15 City Council meeting. 6. Adopt resolutions accepting Accounts Payable for December lI, 18, and 23, Resolution Nos. 10-001 to 10-003. 7. Adopt resolutions accepting Payroll for December 11, 23, and January 8, Resolution Nos. 10-004 to 10-006. 8. Accept the Treasurer's Investment Report for November 2009. 9. Accept an application for an Alcoholic Beverage License from Walgreens, 20011 Bollinger Road, Off Sale Beer & Wine (~!0}. 10. Accept an application for an Alcoholic Beverage License from Sabatini Oak Event Center, 21275 Stevens Creek Blvd., Suit<; 510, do Sale Beer & Wine -Eating Place (41). 2-15 January 19, 2010 Cupertino City Council Page 7 12. Adopt a resolution authorizing the adoption of a policy statement on local government retirement benefits, Resolution No. 10-008. 13. Adopt a resolution authorizing the Mayor to execute an amendment to the Joint Powers Agreement for the administration of the Santa Clara County Congestion Management Program, and request that the City Clerk forward the executed amendment to the Santa Clara Valley Transportation Authority (VTA), Resolution No. 10-009. 14. Adopt resolutions establishing a separate City Attorney barg_aining_group. A. Adopt a resolution amending Resolution No. 07-Ob9 {Unrepresented Employees Compensation Program), repealing Resolution No. 09-194, and establishing the City Attorney's bargaining group, Resolution No. 10-010 B. Adopt a CaIPERS resolution implementing the new bargaining group, Resolution No. 10-O1 l 1 S. Approve Phase III of Cupertino's Emnloyee Wellness Program. 18. Adopt a resolution accepting a Quitclaim Deed and Authorization for Underground Water Rights, Alex Simonovich and Wendy RE. Simonovich, 10185 Amelia Court, APN(s} 326-17-020, Resolution No. 10-012. The property owners of this residential development agree to grant to the City the right to extract water from the basin under the overlying property. 19. Adopt a resolution accepting a uitclaim Deed and Authorization for Underground Water Rights, Monique E Caruth and Cedric D Caruth, 916 Candlewood Drive, APN 359-19- 022, Resolution No. 10-013. The property owners of this residential development agree to grant to the City the right to extract water from the basin under the overlying property. ITEMS REMOVED FROM THE CONSENT CALENDAR (above) 11. Adopt a resolution approving the destruction of records from the City Clerk's office and the Quinlan Community Center, Resolution No. 10-007. Councilmember Santoro asked the City Clerk for clarification of the retention policy. City Clerk Kimberly Smith stated that according to the approved records retention schedule, certain records needed to be kept for two years while others were kept for a longer period of time. The City Clerk's office regularly reviews the records to determine which ones have reached the end of their retention period and are to be destroyed. T`he appropriate department heads are provided the list so they can pull any records that may still be needed, and the f nal destruction list is reviewed and approved by the City 2-~s January 19, 2010 Cupertino City Council Page 8 Attorney. The City Clerk further noted that permanent documents, such as resolutions, ordinances and minutes, are kept both digitally and on microfilm. Although it is not required by State Law, the City Council packets axe also treated as permanent documents. Santoro moved and Wong seconded to adopt Resolution No. 10-Q07. The motion carried unanimously. 16. Award a construction contract to Robert A. Bothman, Inc., for the Quinlan Center Plaza. Renovation, Project No. 2009-9237, in the amount of $214,439.00, and accept the Add Alternate for new benches in the amount of $9,085.00, for a total contract amount of $223,524.00, and approve a construciion contingency of $36,476.00 to cover any unforeseen work required to complete thf; project, for a total of $260,000.00. Councilmember Mahoney removed thi:~ item from the Consent Calendar for a brief review of the project. City Architect Terry Greene explained that several years ago Council directed that the fountain be turned off because of drought conditions. Deterioration of the adhesive materials caused leakage and created a liability issue, so in 2007 Council approved $280,000 in the 2007-08 capital improvement budget for the demolition of the fountain and design of a new plaza feature. In August, 2008 Council approved the trellis concept and in December, 2008 bids were opened. Mr. Greene noted that the trellis concept before Council was slightly different than that z~greed upon in 2008. The current design calls for a steel trellis structure located on the site of the existing fountain. He explained that the cost of new benches was very close to the cost of refurbishing the old ones, so staff was recommending new benches. Mr. Greene noted that the cost of replacing the fountain would be approximately $750,000 to $1 million. Mr. Greene also commented that this project was time sensitive so it could be i.n time for the July 4 city celebrations. Mahoney moved and Wong seconded to continue this item to after discussion of the mid- year budget discussion. The motion carried unanimously. The following is the motion taken on the subject at the end of the meeting. Mahoney moved and Wang seconded to award a construction contract to Robert A. Bothman, Inc., for the Quinlan Center Plaza Renovation, Project No. 2009-9237, in the amount of $214,439.00, and accept the ,add Alternate for new benches in the amount of $9,085.00, for a total contract amount of $223,524.00, and approve a construction contingency of $36,476.00 to cover any iunforeseen work required to complete the project for a total of $260,000.00. The motion carried 4:1 with Chang voting no. 17. Authorize the City Manager to negotiate and execute a design services agreement with SSA Landscape Architects Inc. for Stevens Creek Corridor Phase 2, for a fee not to exceed $120,000. '2-17 January 19, 2010 Cupertino City Council Page.9 City Manager Dave Knapp reported that the first phase of the Stevens Creek Corridor project was completed and opened to the public in July 2009. Phase II was approved as part of the 2009-10 capital program. Funding for the design services was available from the approved project budget. The project balance of $l.l million was expected to be provided from park dedication fees and be authorized as part of the 2020-11 Capital Improvement Budget. Councilmember Chang expressed concerns about the location of the trail, the cost of the project and the safety of the parking lot off Stevens Creek. Mayor Wong and Council Members Mahoney and Santoro noted that this project had been ongoing for some time and had been thoroughly discussed at prior meetings, and funds had been budgeted for its completion. Councilmember Santoro noted that even if the trail was put in, the creek could be restored at a later date. He also raised the issue of the parking not being specifically approved by Council nor heard by the public. He requested that in the future staff should provide as much information as possible on this project, and said projects such as this one with monetary implications should not be included on the Consent Calendar. Anne Ng, Board Member of the Friends of Stevens Creek Trail, encouraged Council to maintain the momentum of completing the whole Stevens Creek Corridor and to approve funding for this plan. She expressed regret that the grant had not been approved for creek restoration but urged Council to save approximately that amount of land so it could conceivably be done in the future. She would not want to see the trail up against the creek with the golf course against it on the other side. City Architect Terry Greene reported on the reconfiguration of the parking lot at the Blue Pheasant to accommodate buses dropping off children. There was a pull out for buses on McClellan but no buses would go into Blackberry when the trail was done. He also noted that the design would include parking in the scope of work but they could ask the design group to come up with a plan without parking. However, they would have to look carefully at the settlement agreement. Director of Parks and Recreation Mark Linder noted that this project could be deferred to a later date. Design options could be brought back to Council before a final decision was made. Mahoney moved and Wong seconded to authorize the City Manager to negotiate and execute a design services agreement for Phase H not to exceed $120,000 and that as part of that design services agreement all the discussion points heard here tonight would be incorporated. Mayor Wang questioned whether the architect could be asked to prepare a preliminary design. 2-~a January 19, 2010 Cupertino City Council Page 10 City Architect Terry Greene responded ghat for 15% - 20% of the $120,000 a conceptual design could be done. The design process included a schematic design, design development, construction documents an3 several conceptual designs could be included. Mayor Wang offered a friendky amendment to the motion to ask for a conceptual design. This friendly amendment was not acceptc;d. Mahoney moved and Wong seconded to authorize the City Manager to negotiate and execute the design services agreement vvith SSA Landscape Architects Inc., and asked staff to bring back conceptual designs showing alternative parking lots, and one option of no parking lot at all. The motion carried 4:1 with Chang voting No. RECESS -Council was in recess from 8:35 p.m. to 8:42 p.m. Mayor Wang re-ordered the agenda to hear item I`1o. 24 next. 24. Adopt a resolution ordering the abatement of a public nuisance weeds pursuant to provisions of Ordinance No. 724 and Resolution No. 09-204, Resolution No. 10-016. Milton Kumre, Weed Abatement Coordinator, explained that the list of properties before Council were found to be noncompliant at least once in the last 3 years and were at risk for fire. Presently the deadline was April 15, and if a property was was not in compliance at that time, the owner would receive a 15 day notice requesting them to abate the nuisance. If that was not done the count; would do the abatement and the charge would be placed on the owner's tax bill. If are owner complied there was no charge, and no charge was incurred while the notification process was underway. Identification of such properties was made by the county ancI city code .enforcement. If identified by code enforcement, a list was provided to the county staff which then confirmed the problem. Thomas Hutton stated he owned appre~ximately 2.8 acres three sides of which were bordered by woodlands. He has his property cleared each May but found it difficult to comply by the April 15t~` deadline because of winter conditions. He requested a later deadline. Mr. Kumre stated that owners with specific concerns could contact his office and he would work with them on an individual basis. These owners would not incur a fee unless they did not comply with the newly agreed-upon deadline. Mahoney moved and Wong seconded to aciopt Resolution No. 10-016, amended to add the words "as listed in attachment B" to parag~~aph No. 2 on page 24-2. The motion carried 4-1, with Chang voting no. PUBLIC HEARINGS 20. Consider approving bingo permit renewals for the Senior Center Coordinating Council and St. Joseph's Church. 2-19 January 19, 2010 Cupertino City Council Page 11 Wong moved and Mahoney seconded to approve the bingo permit renewals as presented. The motion carried unanimously. 21. CaliforniaFIRST Pro rg am, a fmancing mechanism for renewable ener~y (continued from Dec. 15): A. Adopt a resolution authorizing the City of Cupertino to join the CaliforniaFIRST Program, Resolution No. 10-014 B. Authorize the California Statewide Communities Development Authority to accept applications from property owners, conduct contractual assessment proceedings, levy contractual assessments within the territory of the City, and authorize related actions C. Adopt a resolution authorizing the County of Sacramento to apply for and accept State Energy Program (SEP) funds on behalf of the City of Cupertino, Resolution No. 10-015 Public and Environmental Affairs Director Rick Kitson stated that when the Environmental Affairs Coordinator position was established a year ago the goal was to protect resources and to provide opportunities to residents to install energy and resource saving technologies and this was one of several proposals. 3o Boone, Climate Change and Sustainability Manager for the County, explained that the CaliforniaFirst Program was a pilot program developed to provide financing to property owners for renewable energy, energy efficiency and water efficiency projects. This program was optional and the property owners could choose to pay off the assessments at any time subject to applicable prepayment penalties. The loan was also attached to the home, not the owner's personal credit. This PACE (property assessed clean energy) program included no costs to the city, provided a turnkey service to handle the entire process from homeowner application to funding, provided expertise in areas that the city was not familiar with and provided a means for the city to achieve climate/environmental goals. Chang moved and Wong seconded to adopt Resolution Nos. 10-014 and 10-015 authorizing the city to join the CaliforniaFirst program, authorizing the California Statewide Communities Development authority to accept applications from property owners and authorizing the County of Sacramento as the lead collaborative entity to apply for State energy program funds on behalf of the City of Cupertino. The motion carried unanimously. UNFINISHED BUSINESS -None 2-20 January 19, 2010 Cupertino City Council Page 12 NEW BUSINESS 22. Review and adopt the Green Building Or~Jinance urocess framework and budget. Senior Planner Aki Honda reported th~-t in June 2009 the Santa Clara County Cities Association's Board of Directors adopted Phase II policy recommendations prepared by the Green Building Collaborative. These recommendations were formed to encourage each city to adopt policy recommendations to aid in meeting the region's climate change goals. The Planning Commission recommended that the Council adopt the Green Building Ordinance process framework as discussed at their November 24, 2009 meeting. Staff estimated that the cost of preparing a Green Building Ordinance based on these recommendations would be $SS,000 - $65,000. This included consultant costs at $45,000 and the cost of mailings, outreach and workshop materials at $15,000 - $20,000. Staff recommended using the remaining mo~~ies in the Green Building Certification Fund ($46,000) and $19,000 as proposed in the mid-year budget review. Staff also proposed a less expensive alternative. At a cost of `.525,000 the Phase XI recommendations could be reviewed as a basis for the ordinance anti outreach meetings would be limited. Staff also recommended establishing two focus groups (one residential, one commercial) as opposed to creating a task force. Council discussed the costs involved in this program, especially the consultant's costs. They asked for clarification of the Gree:a Building Certification Fund and noted that of the $50,000, in this fund only $4,000 lead been distributed to two applicants since its implementation. Director of Community Development ~-arti Shrivastava noted that this project was in their approved work plan but could be modified at Council's direction. She noted that most of the other cities were customizing their ordinance and the Planning Commission recommended this course so that all issuers raised by residents would be addressed. Councilmember Chang moved that staff be directed to look at Green Building guidelines from other sources and report to Council. Council could then decide on direction. There was no second to this motion. Mahoney moved and Wong seconded to direct staff to proceed with the alternative process not to exceed $25,000 (reallocated from the unused portion of the Green Building Certification Fund). The motion carried with Wang voting no. She explained that she did not want that much money spent on the project. RECESS -Council recessed from 10:25 p.m. to 10:32 p.m. 2-21 January 19, 2010 Cupertino City Council Page 13 NEW BUSINESS {continued) 23. Review and approve the 2009/10 mid-year budget adjustment. Director of Finance David Woo introduced the midyear budget adjustment by stating that on a review of revenues to date, there was an additional reduction over the original budget estimate of $1.35 million. This was primarily due to the recession and was concentrated in the categories of sales tax, transit occupancy tax, permits, senior trip revenues and interest income. Staff had looked at areas for possible cuts in expenditures and presented to Council a list of items that reduced the budget but did not affect customer programs and service levels. Carol Atwood stated that the General Fund reserve policy levels were still intact and that the city had not used the Economic Uncertainty reserve to balance the budget at this time. Council discussion followed on the possible removal of $19,000 far the green building study and $10,000 for the electric car charging station. These funds would be transferred into a designated account for future decisions on the Scenic Circle Bridge, Lehigh Cement study or the electric car charging station only. Jennifer Griffin noted that last year the issue of library funding was also discussed and at that time the suggestion was made to eliminate maintenance of city sidewalks as a revenue source. She was strongly against this and urged the Council not to discuss this possibility again. In addition Ms. Griffin commented on the Lawrence Mitty Park and hoped that Council would continue efforts to acquire this park. Anne Ng thanked the Council for seriously considering direct access to Blackberry Farm for bicycles and pedestrians and for providing the funding for this to happen. She hoped that the future path would be built as environmentally friendly as passible Carol Stanek stated her support for funds in the midyear budget for Americans with Disabilities (ADA) access from Scenic Avenue to Blackberry Farm. She thanked the Council and staff for all of their work on these important projects to the city. Mahoney moved and Wong seconded to approve the adjustments shown in the staff report except for the Electric Vehicle Charging Station Installation ($10,000), and the Green Building Ordinance Development ($19,000). Those funds would be held in an opportunity fund for the next six months and could be used for activities related to the Lehigh Cement Plan if needed, an electric charging station if a proposal came forth, or an addition to the Blackberry Farm Bridge. The motion carried unanimously. z-zz January 19, 2010 Cupertino City Council Page 14 CONTINUED 16. Award a construction contract to Robert A. Bothman, Inc., for the Quinlan Center Plaza Renovation, Project No. 2009-9237, in the amount of $214,439.00, and accept the Add Alternate for new benches in the amouc~t of $9,085.00, for a total contract amount of $223,524.00, and approve a construction contingency of $36,476.00 to cover any unforeseen work required to complete the: project, for a total of $260,000.00. This item was originally discussed under "Consent Calendar." The conversation continued at 1 I:35 p.m. City Manager Dave Knapp commented :hat the city did have some liability at this time with an unused fountain in place. Additionally, by creating more usable, recreational space there was the opportunity for more uses and more revenue to the city. Councilmember Mahoney stated that Council had not confirmed that funds were available, so he was in favor of the project. Vice Mayor Wong expressed strong concerns about this project and suggested that the matter be continued for a full staff report. Councilmember Chang stated that he did not want to spend the money on this project. Mahoney moved and Wang seconded i:o award a construction contract to Robert A. Bothman, Inc., for the Quinlan Center Plaza Renovation, Project No. 2009-9237, in the amount of $214,439.00, and accept the f~dd Alternate for new benches in the amount of $9,085.00, for a total contract amount. of $223,524.00, and approve a construction contingency of $36,476.00 to cover any unforeseen work required to complete the project, for a total of $260,000.00. The motion carried 4:1 with Chang voting no. ORDINANCES -None STAFF REPORTS -None COUNCIL REPORTS Council members highlighted the activities of their committees and various community events. Council also directed staff to change the commission interview dates from Tuesday and Wednesday next week to Monday and Wednesday. Interviews will begin on Monday, January 25, at 7:00 p.m. 2-23 January 19, 2010 Cupertino City Council Page 15 ADJOURNMENT At 12:05 a.m. the meeting was adjourned to 7:00 p.m. Monday, January 25, 2010 for commission interviews in Conference Room A of City Hall. Kimberly Smith, City Clerk Staff reports, backup materials, and items distributed at the City Council meeting are available for review at the City Clerk's Office, 777-3223, and also on the Internet at www.cupertino.orQ. Click on Agendas & Minutes, then click on the appropriate Packet. Most Council meetings are shown live on Comcast Channel 26 and AT&T U-verse Channel 99 and are available at your convenience at www.cupertino.org. Click on Agendas & Minutes, then click Archived Webcast. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364. 2-24 CUPERTINO DRAFT A~IINUTES CUPERTINO CITY COUNCIL Regular Adjoi,trned Meeting Monday, January 25, 2010 CITY COUNCIL MEETING ROLL CALL At 7:05 p.m. Mayor Kris Wang called the reguiar adjourned meeting to order in Conference Room A, 10300 Torre Avenue, Cupertino, California. Present: Mayor Kris Wang, Vice-Mayor Gilbert Wong, and Council members Barry Chang (7:09 p.m.), Orrin Mahoney, and Mark Santoro. Absent: none. ORAL COMMUNICATIONS -None NEW BUSINESS 1. Accept the resignation of Christina HacJ'cworth from the Fine Arts Commission and fill the vacancy during the annual commission interviews. Wong moved and Mahoney seconded to :accept the resignation and f 11 the vacancy during the annual commission interviews on January 27. The motion carried with Chang absent. BOARDS AND COMMISSIONS INTERVIEWS Council member Chang was present for the interviews. 2. Interview applicants for commission and committee vacancies. • Fine Arts Commission The City Council interviewed incumt~ent KC Chandratreya and Srilakshmi Sitaraman. The City Council appointed KC Cha~~dratreya to a second term ending January 2014, and appointed Srilakshmi Sitaraman i:o a partial term ending January 2013, which will count as a foil term. 2-25 January 25, 2010 Cupertino City Council Page 2 • Community Development Block Grant Committee No qualifying applications were submitted for the two vacant positions. Staff will continue to post these vacancies (Garden Gate and Rancho Rinconada areas) until filled. • Housing Commission Applicant Tung Cheung did not interview for the vacancy since .he did not qualify for the Financial Representative position. Staff will continue to post the vacancy until filled. • Bicycle Pedestrian Commission The City Council interviewed Rekha Sathish, Joseph Walton, Sreekanth Bhaskar, William Chan, Teresa Olson, Kenneth Ferguson, Stephen Hsieh, and Clinton Brownley. The City Council appointed William Chan to a partial term ending January 2011, which will not count as a full term since it,is less than two years. The City Council directed staff to look into the rule that a member of an advisory body, having completed two consecutive terms, must wait one year before being eligible to apply for the same commission or committee, and to bring the issue to a future meeting for Council consideration. ADJOURNMENT At 9:15 p.m. the meeting was adjourned to Wednesday, January 27 at 6:00 p.m. to conduct additional commission interviews. The meeting will be held in Cupertino City HaII Conference Room A, 10300 Torre Avenue. Grace Schmidt, Deputy City Clerk 2-2s CUPERTINO DRAFT 1~/IINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Wednesday, January 27, 2010 ROLL CALL At 6:08 p.m. Mayor Kris Wang called the regular adjourned meeting to order in Conference Room A, i 0300 Torre Avenue, Cupertino, California. Present: Mayor Kris Wang, Vice-Mayor Gilbf:rt Wong, and Council members Barry Chang, Orrin Mahoney, and Mark Santoro. Absent: none;. BOARDS AND COMNIISSIONS INTERVIEWS 1. Interview applicants far commission and committee vacancies: • Public Safety Commission The City Council interviewed Alex Nie, Michele Keefhaver, Stephen Hsieh, Andy Huang, Nirvair Singh, Tung Sheung, incumbent Nina Daruwalla, Clinton Brownley, Vijay Veeramachaneni, and incumbent Daniel Nguyen. The City Council appointed Nina Daruwalla to a second full term and Daniel Nguyen to a first full term, each ending January 2014. • Parks and Recreation Commission The City Council interviewed Alex Nie, Michele Keefhaver, Nirvair Singh, Tung Cheung, Vijay Veeramachaneni, i~n.cumbent David Greenstein, Sarah Khan, and Veronica Law. The City Council appointed David Greenstein to a second full term ending January 2014. ORAL COMMUNICATIONS -None ADJOURNMENT At 8:52 p.m. the meeting was adjourned. Grace Schmidt, Deputy City Clerk z-z~ C U P E RT I N O DRAFT MINUTES CUPERTINO CITY COUNCIL Regular Meeting Tuesday, February 2, 2U10 ROLL CALL At 6:15 p.m. Mayor Kris Wang called the meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California. Present: Mayor Kris Wang, Vice-Mayor Gilbert Wong, and Council members Barry Chang, Orrin Mahoney, and Mark Santoro. Absent: none. CLOSED SESSION 1. Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: one case. At 6:15 p.m. Council recessed to a closed session to discuss this item. At 6:45 p.m., Council reconvened in open session. Mayor Kris Wang announced that the City Council received a briefing from legal counsel and no action was taken. PLEDGE OF ALLEGIANCE At 6:45 p.m. Mayor Kris Wang called the regular meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. Present: Mayor Kris Wang, Vice-Mayor Gilbert Wong, and Council members Barry Chang, Orrin Mahoney, and Mark Santoro. Absent: none. CEREMONIAL MATTERS -PRESENTATIONS 2. Proclamation for the 30th anniversary of Live Oak Adult Day Services program at Cupertino. (No documentation in packet}. Mayor Wang presented the proclamation to Colleen Hidgen, Executive Director of the Live Oak Adult Day Services. Colleen Hidgen stated that it was a passion of hers to help make sure the seniors led full and enriched lives and remained connected with the community. Live Oak Adult Day z-is February 2, 2010 Cupertino City Council Page 2 Services worked in partnership with St. Jude's Church and provided such services to the seniors in Cupertino, and she was honored to be part of the program. POSTPONEMENTS WRITTEN COMMUNICATIONS The City Clerk distributed the following items: Item Nos. 11 and 12, Acceptance of Cit~proiect,s Email from Susan Sievert saying that the map provided was insufficient. Item No. 15, MarYAvenue Senior Housing In support, emails from Donna Jones-Dulin of DeAnza College Finance and Educational Resources, Christopher Schwab, Ann Cleaver, Lynn Ching, Jessica Rose Tracy. The City Clerk also distributed copies of the project elevations and artist renderings of the cottages. In opposition, emails from Barinder Saini, Datt<< Sawant, Padmaja Petla, Nirmala Pailla, Sudha Andra, Ravi Sridharan, Yamesh Yerraguntla, Su~dhakar Reddy, Santosh Dhavalikar, Mary Anila, Appala Patnala, Maneesh Pawar, Padmini Ongole, Subrahmanyam Ongole, Susan Sievert, Anuradha, Duleep Pillai, Ranjan Desai, Senthil I'andurangan, Viji, Keith Murphy. ORAL COMMUNICATIONS Cathy Helgerson expressed her concerns about ~:he Apple complex in the city. She noted that in 2005 she had sued Apple and the city because of cancer-related issues. She also stated that there was a noise issue because Apple had a nitroger.~ tank and a .compressor and chemicals from the facility were negatively affecting the city's water and sewer lines. She wanted Apple's building moved and their permit rescinded. To date she had not received a response from the city on these issues. Furthermore, she did not agree with having only three minutes to express her concerns. Mayor Wang asked the City Manager to respond to Ms. Helgerson and he noted that he would request the Bay Area Air Quality Management District to provide data on Apple's air quality levels. CONSENT CALENDAR Wong moved and Mahoney seconded to approve the items on the Consent Calendar as recommended, with the exception of Item Nos. 8, 11, and 12 which were pulled for discussion. Ayes: Chang, Mahoney, Santoro, Wang, and Wong. Noes: None. Abstain: None. 3. Adapt resolutions accepting Accounts Payable for January 8, 15, and 22, Resolution Nos. 10-017 to 10-0 I9. 4. Adopt a resolution accepting Payroll for :~anuary 22, Resolution No. 10-020. 2-29 February 2, 2010 Cupertino City Council Page 3 5. Adopt a resolution accepting the Treasurer/Deputy Treasurer appointment, Resolution No. 10-021. 6. Accept the Planning Commission's recommendation to select Paul Brophy as the Environmental Review Committee representative. 7. Adopt a resolution supporting the League of California Cities initiative Local Taxpayer, Public Safety and Transportation Protection Act of 2010, and direct staff to forward the resolution to the League of California Cities, Resolution No. 10-022. 9. Adopt a resolution approving a Stormwater Management Facilities Operation And Maintenance Agreement, Apple Inc., 19333 Vallco Parkway, APN{s) 316-20-075 and 316-20-076, Resolution No. 14-024. . Through an agreement with the City, the property owner of this commercial development will be required to operate and maintain stormwater management facilities in accordance with the approved Stormwater Management Plan, to minimize adverse impacts due to changes in storm and surface water flow conditions. 10. Adopt a resolution accepting a uitclaim Deed and Authorization for Underground Water Rights, Sanjay Sawhney and Vishakha Sawhney, 21071 Grenola Drive, APN 326-28- 006, Resolution No. 10-025. The property owners of this residential development agree to grant to the City the right to extract water from the basin under the overlying property. The City's contractor Petersen-Dean Commercial, Inc., completed work on the Monta Vista Roof Project. The project involved installation of gutter, remove and replace structural beam and improvements to roof integrity. 13. Adopt a resolution accepting a Quitclaim Deed and Authorization for Underground Water Rights, Thomas Surrette & Hemal Surrette, 22001 Lindy Lane, APN 356-27-002, Resolution No. 10-026. The property owners of this residential development agree to grant to the City the right to extract water from the basin under the overlying property. 14. Adopt a resolution accepting a Quitclaim Deed and Authorization for Underground Water Rights, Roy Hong and Andrea Hong, 10928 Sycamore Drive, APN 342-56-037, Resolution No. 10-027. The property owners of this residential development agree to grant to the City the right to extract water from the basin under the overlying property. 2-30 February 2, 2010 Cupertino City Council Page 4 ITEMS REMOVED FROM THE CONSENT CALENDAR {above} 8. Adopt a resolution approving a Stormwater Management Facility Easement Agreement, Apple Inc., 19333 Vallco Parkway, API`T(s} 316-20-075 and 316-20-076, Resolution No. 10-023. Through an agreement with the City, the properly owner of this commercial development will be required to grant ingress and egress rights to the City for the purpose of inspecting stormwater management facilities installed in accordance with the approved Stormwater Management Plan. Councilmember Santoro referred to the map and wanted to make sure that the city had access to the storm water management facilities. Public Works Director Ralph Qualls responded that such access was noted in the agreement. Santoro moved and Wong seconded to adopt Resolution No. 10-023. The motion carried unanimously. For item Nos. 11 and 12, Council acknowledged receipt of email from Susan Sievert saying that the map in the backup materials was insufficient as a staff report. 11. Accept a City Project performed under contract: Memorial Park Softball Field & Library Field Irrigation Renovation, Project No.:1009-03. The City's contractor B&B Landscape Contractors, Inc., completed work on the Memorial Park Softball Field & Library Field Irritation Renovation Project. The project involved grading, storm drain, wood repair, irrigation and temporary fencing. 12. Accept a City Project performed under contract: Monta Vista Roof Project, Project No. 2009-01. Mahoney moved and Wong seconded to approve item Nos. 11 and 12 as presented. The motion carried unanimously. PUBLIC HEARINGS -None Mayor Wang re-ordered the agenda to hear item No. 16 next. NEW BUSINESS 16. Delegate authority to the City Manager to sign the Memorandum of Understanding for Cooperative Purchasing of Power with the Coun , of Santa Clara if adopted by the County Board of Supervisors in substantially the same form as the document attached to this report. 2-31 February 2, 2010 Cupertino City Council Page S Mahoney moved and Chang seconded to authorize the City Manager to sign the MOU with the County of Santa Ciaza as set forth in the staff report. The motion carried unanimously. Councilmember Santoro stated he did not agree with moving items out of order for discussion. He was concerned about not giving people the right to speak on an item if they arrived at the anticipated time for the item but it had already been discussed. While he voted favorably on Ttem 16 at this meeting, he did not intend to do so at future meetings for items that had been moved forward on the agenda. UNFINISFIED BUSINESS 15. Consider the following actions related to a potential 18-20 unit senior, affordable housing rp oiect from the Cupertino Rotary Housing Corporation (CRHC): A. Approve a Memorandum of Understanding (MOU) between the City and the CRHC {see Attachment A) B. Give priority to CRHC for uncommitted Redevelopment Agency (RDA) Housing funds, Community Development Block Grant (CDBG) funds and Below Market Rate (BMR) funds C. Authorize $11,000 to prepare a Record of Survey for the Mary Avenue right-of- way D. Authorize staff to initiate the rezoning and General Plan amendment for the project area and related fiznding City Manager David Knapp introduced the project and noted that the memorandum of understanding, if adopted, would express the intent of both the Cupertino Rotary Housing Corporation and the city to work together on this affordable senior housing project, but the MOU was not a binding agreement. The Council was also being asked to commit the city's affordable housing monies to this project in order to rezone the property as multiple family residential, and to authorize a record of survey. Richard Lowenthal, President of the Cupertino Rotary Housing Corporation (CRHC), said that the proposed 18-20 unit affordable senior housing project had an excellent location close to amenities such as the Senior Center, Memorial Park and DeAnza College. The benefits to the community included improvements to Mary Avenue traffic, additional trees and greenscape, pazallel parking and bike lanes, and no impact on schools. The CRHC would design, build and maintain the project. Mr. Lowenthal noted that some concerns had been raised such as parking, traffic, air quality, property values, senior housing needs and quality of maintenance, and those issues would be fully addressed in the formal application. Mr. Lowenthal stated that this :property had virtually no value to developers asfor-prof t housing and retail would not work. The cost of the 2-32 February 2, 2010 Cupertino City Council Page 6 project was $5-6 million with no General Fund monies being used. There were two options, one with tax allocation credit;; and one not. The CRHC planned to raise $1 million, use a bank loan and have acce;~s to the city's specifically allocated monies for affordable housing. He noted that this project met the goals and objectives listed in the city's General Plan. Mr. Lowenthal said that the MOU would not be binding for the city, but it would allow the CRHC to move forward with the design aspects of the project and to start the process of obtaining bank funding. Jim Jackson, working with the CRHC board, said that originally the main funding source was going to be tax allocation credits,, but that's far less likely now because of the downturn in the economy. He noted th;~t to pursue the tax allocation credit option the syndication/consulting fees were about $700,000. For-profit groups bought the tax credits to offset other taxes, but to package and. sell the tax credits it was necessary to do some marketing and advertising. The consulting fees included for the non-profit developer, Charities Housing, was needed becaus ~ they had the expertise to do these kinds of projects. Council members questioned the high cost of consulting fees, the width of the road after the project was completed, which agencies would receive the property tax monies, whether Council could allocate funds such as CDBG monies to another project in the future, what action could Council take i.f the property was rezoned now but the project was not approved, whether there was a time limit on the MOU, if there would there be any encumbrances on the real property, and whether CRHC would match city funds. Richard Lowenthal stated that the consulting fees were the estimates received from Charities Housing. The Council could certainly add a time limit to the MOU and add any encumbrances they deemed necessary. Lowenthal stated that they would not be able to match city funds, but they were willing to raise $1 million for this worthwhile project. Staff responded that they did not have a specific width for Mary Avenue but it appeared to be about 47'. Additionally if Counci! ;rezoned the property now but the project was not approved they could either reverse their action or leave it in place until another proposal was received. Staff also noted that the :VIOU was not binding and if Council gave this project priority for such funds as CDBG they could change their minds at a later date. Kathy Robinson, Charities Housing, said the consulting fee for the chosen nonprofit was $586,000 in both the tax credit scenario .end the non-tax-credit scenario. In the tax credit scenario, when Mr. Lowenthal referred t:o additional fees for attorneys, accountants, etc. attached to the tax credit syndication, those additional monies were under permanent loan fees, construction loan fees and bond costs. In the non-tax credit scenario, those items were much lower. The following speakers were opposed to the project. Their objections included: • It would eliminate parking spaces needed by the public when attending Memorial Park and the DeAnza College flea market. There were already many parking problems during 2-33 February 2, 2010 Cupertino City Council Page 7 events at Memorial Park, and people would be forced to park in front of Casa DeAnza on or that private property. • Students want to save every penny and don't want to pay for parking on campus, so this parking on Mary provided a service to students. • Casa DeAnza residents will bear the burden of this project. It was already difficult to merge into traffic during college hours, especially when making a left turn leaving Casa DeAnza. • The location was inappropriate for seniors because of its proximity to Highway 85 and the accompanying noise and air pollution. • There were better locations elsewhere in the community for senior housing. • More cars and a narrower road would worsen the traffic congestion, increase commute times, and create more inconvenience for current residents, walkers and cyclists. • Traffic congestion would increase accidents on Mary Avenue. The whole community had not had time or sufficient information to study this project. • It would take away the current beauty of the location for only 18 houses. • It would be more efficient to build multiple apartments in a better location such as next to the library for seniors rather than building just a few cottages. • Concerns about the financing of this project - no city funds should be used -cost to the city of giving up the land. • Conversion to a residential street would create more traffic problems. • Negative impact on neighboring properties. • How would this project fit into the Oaks Center project that was already approved. Nirmala Pailla Ramesh Yerraguntla Appals Patnala Sid Shettay Raghupathi Subliah Barinder Saint Cathy Helgerson. Joan Lee Gangadhar Andru Duleep Pillai Jennifer Griffin Tom Hugunin Darryl Lum Bob McKibbin Keith Murphy Ranjan Desai Park Chamberlain Senthil Pandurangan John Cruz 2-34 February 2, 2010 Cupertino City Council Page 8 The following speakers were in favor of the proj~;,ct. Their comments included: • Aging Cupertino residents needed smaller places where they could "downsize" their homes and yard work. t • The location was good near the Senior Center, the Oaks, DeAnza College, Mary Avenue Bridge and Memorial Park. + An MOU would allow the CRHC to proceed with an application and design phase without the City Council committing th~:, city to participation. It was aloes-risk option and Council could choose to reject the project when more details were made available as part of the formal application. + Cupertino had inadequate senior housing. + The project could help to create financial stability for seniors on fixed incomes. The four-lane road was originally intended to lead to the freeway overpass, but that was no longer necessary since the original ~~verpass idea was replaced with the new Mary Avenue pedestrian footbridge. • City general funds would not be used for this project. • The Rotary Club would design, build and maintain the project. • A standard residential street would be sai:er for the neighborhood. • It solved many needs, such as making life simpler far seniors, bringing families closer, and allowing residents to engage in daily activities with their peers while being close to amenities. • It would create apedestrian-friendly neighborhood street which would add value to the community. • This project could help to create a lifelong intergenerational community. • Rotarians particularly want to participate in hands-an community service and would be strong partners for this project. • It would create a unique opportunity to v~~ork the Rotary Club on a worthwhile community .project. Michael Gottwald Cookie Hoover Eleanor Holt Jim Jackson, former Cupertino Mayor Roberta Hollimon, League of Women Voters -Cupertino/Sunnyvale Morris Hosoda John Gatto, former Cupertino Mayor Saron Savoy,West Valley Community Services-Program Mgr., Housing Services Kathy Nellis, former Cupertino C'ouncilmember Liz Gallegos, President -Cupertino Rotary Club Don S#aub, West Valley Commwuty Services Board Kathy Robinson, affordable housing developer for 25 years Steve Andrews Christina Espinosa Jim Black 2-35 February 2, 2010 Cupertino City Council Page 9 Donna Zones Dulin, Associate Vice-President of Finance and Educational Resources for DeAn~za College, said she did not want the Council to base their decision on whether or not some students choose to avoid the campus parking fee. She said that the college had sufficient parking on campus for classes as well as the weekend flea market. There were a few exceptions that triggered overflow parking during the fall term, but these were not consistent and did not last throughout the quarter. She explained that there were 5,500 to 5,800 parking spaces on campus that were expected to turn over four to five times a day. Ms. Dulin said that the current parking rate was $2 per day for students, and even less than that if purchased by the quarter or by the year. Flea market parking was $5. She noted that the education code required the college to charge for parking unless it was for anon-profit use. Councilmember Mahoney believed that in good faith the Council should approve the MOU for a three-year time frame and move this project forward. He noted there were several issues but he was looking forward to the detail of an application. Vice-Mayor Wong thanked Rotary for bringing this project forward but while he was an advocate of senior housing he was not comfortable with the location of this project. He also believed the cost was high, funding would be a challenge and some General Fund money would be needed. Councilmember Chang stated that while he liked affordable senior housing he was not sure this project was best for the city in these current uncertain economic times. In his opinion the location was bad, noise and air pollution were issues, the parking accommodated those at Memorial Park not just DeAnza students and he was not willing to give the land under discussion to anyone. Councilmember Santoro also said that he was in favor of senior housing and believed Rotary would certainly follow through on this project. However, he had several concerns including public input and noticing far this project, future access needs if street was narrowed, traffic patterns if neighborhoods became more dense in the future, noise, air pollution, safety and giving up the road. Mayor Wang wondered if a compromise could be reached to see this project move forward and asked Mr. Lowenthal if the project would work if it were smaller and the street was not narrowed. Richard Lowenthal stated that the project was not feasible if made smaller and/or the street was kept at the current width. He further stated his view that wide streets were more dangerous due to speeding than narrower residential streets and he commented an his years as a Councilmember and member of the Bicycle/Pedestrian Committee as a basis for this opinion. However it appeared that narrowing Mazy Avenue was a key issue for Council. The Cupertino Rotary Housing Corporation was willing to do a $5 million affordable senior housing project for the city but the Council was basically saying no to this project in favor of parking on Mary Avenue. Vice-Mayor Wong stated for the record that the Council did support senior housing. Councilmember Santoro did not think it was fair to say that Council was not in favor of senior housing. Councilmember Chang stated that he was in favor of senior housing. 2-36 February 2, 2010 Cupertino City Council Page 10 Mahoney moved and 'Wang seconded to authori~:e $11,000 to prepare a Record of Survey for the Mary Avenue right of-way. The motion failed 2:3 with Chang, Santoro and Wong voting no. Mahoney moved to approve a memorandum of understanding between the City and the CRHC. The motion failed for lack of a second. Santoro moved and Chang seconded to vote no on all actions related to a potential 1$-20 unit senior, affordable housing project from the Cupertino Rotary Housing Corporation. The motion carried 3:2 with Mahoney and Wang voting no. NEW BUSINESS 17. Set the date of Tuesday, February 23 at 3:00 p.m. for a City Council Work Program study session. (No documentation in packet). The Council concurred to hold a Work Program study session on Tuesday, February 23, at 3:00 p.m. in Community Hall. ORDINANCES -None STAFF REPORTS -None COUNCIL REPORTS Council concurred to start the February 16 meeting at 6:40 p.m. and hear the Scenic Circle item before the Heart of the City item. If the topics on that agenda cannot be finished at that meeting, it will be continued #o the next day. ADJOURNMENT At 11:15 p.m., the meeting was adjourned to Tuesday, February 16, 6:00 p.m., in the City Council Chambex. Kimberly Smith, City Clerk Staff reports, backup materials, and items distributed at the City Council meeting are available for review at the City Clerk's Office, 777-3223, and also on the Internet at www.cubertino.or~. Click on Agendas & Minutes, then click on the appropriate Packet. Most Council meetings are shown live on Comc:ast Channe126 and AT&T U-verse Channel 99 and are available at your convenience at www.ci.~~ertino.org. Click on Agendas & Minutes, then click Archived Webcast. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364. 2-37